DEFENSE LOGISTICS AGENCY

HEADQUARTERS

8725 JOHN J. KINGMAN ROAD 

FORT BELVOIR, VIRGINIA 22060-6221

 

 

 

 

 

 

December 08, 2015

MEMORANDUM FOR SUPPLY PROCESS REVIEW COMMITTEE (PRC) MEMBERS

SUBJECT: Approved Defense Logistics Management Standards (DLMS) Change (ADC) 1152,

Authorization to Use a Suffix Code in a Redistribution Order (RDO) in Support of

DLA Industrial Product-Support Vendor (IPV) Program

The attached change to DLM 4000.25, Defense Logistics Management Standards, and DLM

4000.25-1, Military Standard Requisitioning and Issue Procedures (MILSTRIP) is approved for

intra-DLA implementation. The updated DLMS Implementation Conventions (IC) will be posted

to the Defense Logistics Management Standards Office Web at www2.dla.mil/j6/dlmso/elibrary/TransFormats/140_997.asp within 10 days from the above date.

Supply PRC addressees may direct questions to Ms. Ellen Hilert, (703) 767-0676; DSN

427-0676, email: Ellen.Hilert@dla.mil; or Ms. Heidi Daverede, (703) 767-5111, DSN 427-5111,

email: Heidi.Daverede@dla.mil. Others must contact their Component designated Supply PRC

representative available at https://www2.dla.mil/j-6/dlmso/CertAccess/SvcPointsPOC/allpoc.asp.

DONALD C. PIPP

Director

Defense Logistics Management

Standards Office

Attachment

As stated

cc:

ODASD (SCI)
ADC 1152 Attachment

Page 1

Attachment to ADC 1152

Authorization to Use a Suffix Code in a Redistribution Order (RDO) in

Support of DLA Industrial Product-Support Vendor (IPV) Program

1. ORIGINATING SERVICE/AGENCY AND POC INFORMATION: Defense Logistics

Agency (DLA), Elaine Applegate, HQ Order Management, J-33, DSN 427-1249, Commercial

(703) 767-1249

2. FUNCTIONAL AREA:

a. Primary/Secondary Functional Area: Order Fulfillment/Audit Readiness

b. Primary/Secondary Functional Process: Redistribution Orders (RDO)/Issues

3. REFERENCES:

a. DLM 4000.25-1, MILSTRIP, Chapter 3 Requisition Processing and Related Actions,

Paragraph C3.23 Processing Redistribution Orders; Appendix 2.8 Demand and Suffix Codes, and

Appendix 3.25 Redistribution Order.

b. DLM 4000.25, Defense Logistics Management Standards, Volume 2 Supply

Standards and Procedures, Chapter 4 Requisitioning, Paragraph C4.7.22. Processing

Redistribution Orders (RDO), Appendix 7.8 Demand and Suffix Codes, Appendix 8.25

Redistribution Order, and DLMS Implementation Convention 940R.

c. PDC 1168, New Source of Supply (SoS) Delivery Acknowledgement (SDA)

Transaction for the Industrial Product-Support Vendor (IPV) Program, September 18, 2015

d. Approved DLMS Change (ADC) 1014, Revised Procedures for Inclusion of Contract

Data in Transactions Associated with Government Furnished Property (GFP) and Management

Control Activity (MCA) Validation of Contractor Furnished Materiel (CFM) Requisitions,

August 17, 2012.

e. ADC 1014A, Revised Procedures for Inclusion of Government-Furnished

Property(GFP)/Contractor-Acquired Property (CAP) Contract Data – Updated Mapping for

Concurrent Identification of the Manufacturing Directive Number (MDN) and the Contract Line

Item Number (CLIN), November 5, 2013.

f. ADC 390, Revise DLMS 527R Materiel Receipt Acknowledgement (MRA) and

Receipt Functions to Require the DOD Contract Number for Transactions Associated with

Government Furnished Materiel (GFM), and for MRA Associated with Contractor Furnished

Materiel (CFM) (Supply and Contract Administration), January 28, 2011.
ADC 1152 Attachment

Page 2

4. REQUESTED CHANGE(S):

a. Brief Overview of Change: The approved change will revise the DLMS 940R,

Release Order, to allow the suffix code to be populated for redistribution order transactions to

support DLA’s IPV program. This revision is for restricted use intra-DLA.

b. Background:

(1) The IPV program is a managed partnership among DLA, the IPV contractor,

and Military Service maintenance activities under which the contractor is responsible for

obtaining and delivering the materiel to the bins at the production lines. Support is provided for

common, easy to procure, high demand industrial hardware. In general, the scope of the IPV

program supports bench stock materiel stored in bins, such as bolts, nuts, and washers. Under

the IPV program, IPV contractors perform functions of supply chain management, acquisition,

and delivery of materiel. Acquisition encompasses requisitioning from DLA, requisitioning

from other Component sources of supply, and procuring the materiel on the open market.

(2) Memorandums of Agreement (MOA) among DLA and the Services will be

established to formalize and designate the roles and responsibilities of each party in performing

required tasks to successfully conduct the IPV program in a manner that fosters both operational

efficiency and financial auditability. Under these agreements, DLA will provide oversight for

actions completed by the IPV contractor unless expressly agreed to as a Service responsibility.

(3) The IPV contractor will push materiel to the customer based on monitoring

the consumption of bench stock materiel stored in artisan bins. When the on hand quantity falls

below a recorded threshold, the contractor supporting the IPV process will initiate the

replenishment process. Based on guidance/rules defined in the contract, the IPV contractor will

push materiel to the customer either by requisitioning the materiel from DLA as governmentfurnished material (GFM) or by purchasing the materiel commercially to be provided as direct

vendor delivery (DVD). No customer requisition is initiated or customer due-in established

under this process. After management control activity (MCA) validation of the IPV vendor

requisition, the DLA inventory control point (ICP) will automatically trigger the creation of a

redistribution order (RDO) to the DLA Distribution Center to redistribute from available stock.

DLA will set up the contractor facility receiving the materiel as a storage activity in DLA’s ICP

system, using a contractor U-series DOD activity address code (DoDAAC). This will enable

transfer of materiel from the DLA Distribution Center to the contractor’s facility. After the

contractor posts a receipt for the materiel back to the DLA ICP, the contractor will subsequently

issue the materiel to the customer bins. DLA will not receipt the DVD materiel into its inventory

records, but instead will issue it directly to the customer’s bench stock after DLA acceptance.

(4) In lieu of the customer submitting funded requisitions, DLA and the Service

customer, based upon entering into an MOA, will control/monitor the process by the customer

providing periodic Service funding confirmations, establishing authorized bin quantities, and

approving any changes recommended by DLA or IPV vendor.

(5) The purpose of the funding confirmation is to document the existence of

Service funds availability for valid requirements. DLA will monitor actual sales against the
ADC 1152 Attachment

Page 3

Service funding confirmation and request additional funding if sales approach the confirmed

amount. To minimize risk, DLA will notify the Service of the need for additional funding well

before the dollar value of previously ordered materiel approaches the Service funding

confirmation amount. It should be noted that since the Services do not initiate the requisitions in

this process, they currently do not record detail level obligations in their accounting systems to

support line item Interfund detail bills. DLA is evaluating potential solutions for this issue, such

as the detail level ordering data being provided to the Service when DLA receives the issue

transaction from the IPV contractor.

(6) In lieu of the customer submitting materiel receipt acknowledgement (MRA)

transactions to the wholesale supply source as a byproduct of posting a receipt to stock records,

DLA will generate new Source of Supply (SOS) Delivery Acknowledgement (SDA) transactions

acknowledging delivery of materiel to maintenance activities. The results of the random

sampling of deliveries against shipment manifests will be the basis for generating SDA

transactions to the DLA ICP. A statistically significant sample size guaranteeing 95 percent

confidence level with no more than a five percent margin of error will be employed. Since this

materiel delivery acknowledgement process will be executed by DLA personnel via FEDMALL,

in lieu of the reporting activities’ supply system, the DLMS 527R SDA transaction will be used

to interface with the ICP. The DLA ICP posts the SDA transaction in their records against

eligible IPV sales and purchase orders. (NOTE: The new 527R SDA transaction is currently

being staffed via PDC 1168 (Reference 3.c)).

c. Approved Change in Detail:

(1) The IPV contractor facility will be set up as a storage activity in the DLA

Enterprise Business System (EBS) (referred to as an EBS plant), using a contractor (U-series)

DoDAAC.

(2) After Management Control Activity (MCA) validation, GFM requisitions for

DLA materiel from an IPV contractor will be automatically turned into Redistribution Orders

resulting in transmission of DLMS 940R RDO transactions to the DLA Distribution Center to

redistribute from available stock. This will enable transfer of materiel from the DLA

Distribution Center to the IPV contractor’s facility, from which it will be subsequently issued to

the customer.

(3) The DLMS change needed is the ability to send a suffix code value in the

DLMS 940R RDO transaction. The suffix code will facilitate sourcing an RDO from multiple

DLA Distribution Centers using split shipments and/or creating backorders for partial unfilled

quantities. The DLA Distribution Center will perpetuate the suffix code value provided in the

DLMS 940R RDO to the DLMS 945A Materiel Release.

d. Revisions to DLM 4000.25 Manuals:

Enclosure 1.

(1) Revise the DLMS 940R Implementation Convention (IC) as shown in

(2) Revise DLM 4000.25-1, MILSTRIP:
ADC 1152 Attachment

Page 4

shown below.

(a) Revise Chapter 3, Requisition Processing and Related Actions, as

“C3.23. PROCESSING REDISTRIBUTION ORDERS

C3.23.1. RDOs are originated by an ICP/IMM to direct release of materiel from one

supply distribution activity to another within the same distribution system.

C3.23.2. For intra-Service use, an RDO may be used to direct release and shipment of

materiel from a post, camp, station, or base to another similar activity to satisfy a specific

demand.

C3.23.3. For intra-DLA use, an RDO may be used to redistribute DLA stock from a

DLA Distribution Center to the contractor location in support of the DLA’s Industrial

Product-Support Vendor (IPV) program (refer to DLM 4000.25, Volume 2, Chapter 28).

C3.23.4. RDOs will be prepared in the Appendix AP3.25 format.”

(b) Revise Appendix 3.25, Redistribution Order, as shown in Enclosure 2.

(3) Revise DLM 4000.25, DLMS, Volume 2:

(a) Revise Chapter 4, Requisitioning, as shown below:

“C4.7.22. Processing Redistribution Orders (RDO)

C4.7.22.1. RDOs are originated by an ICP/IMM to direct release of materiel from a

supply distribution activity to another within the same distribution system.

C4.7.22.2. For intra-Service use, an RDO may be used to direct release and

shipment of materiel from a post, camp, station, or base to another similar activity within the

Service’s distribution system to satisfy a specific Service demand.

C4.7.22.3. For intra-DLA use, an RDO may be used to redistribute DLA stock

from a DLA Distribution Center to the contractor location in support of the DLA’s Industrial

Product-Support Vendor (IPV) program (refer to Chapter 28).

C4.7.22.4. Prepare RDOs using the DLMS Implementation Convention 940R.”

(b) Revise Chapter 28, Component Unique Business Processes (new

chapter) as shown in PDC 1168 (Reference 3.c). Following is an excerpt from PDC 1168

containing the applicable guidance:

“C28.2.7.2.2. For materiel/quantities that can be sourced from a DLA Distribution Center,

the DLA ICP will provide both an RDO (DLMS 940R/MILSTRIP legacy DIC A2A) to the DLA

Distribution Center and a Prepositioned Materiel Receipt (PMR) (DLMS 527D with Transaction

Type Code DE and LIN01 Code N, or MILSTRAP legacy DIC DWK) to the IPV contractor.
ADC 1152 Attachment

Page 5

DLA IPV RDOs are authorized to be suffixed if a split action is required such as a partial issue

and a partial backorder of the ordered quantity.”

e. Transaction Flow: New DLM 4000.25, Volume 2, Chapter 28, added in PDC

1168, contains the end-to-end transaction flows for both DLA sourced and commercially sourced

materiel provided to maintenance customers under the IPV process. The following is an excerpt

relative to this PDC request to use a suffix code on the RDO transaction for DLA sourced

materiel:

(1) The contractor will submit GFM requisitions (DLMS 511R/legacy

MILSTRIP Document Identifier Code (DIC) A0_) to DLA. DLA will perform MCA validation.

If the requisition fails validation, DLA will either reject the order immediately or create a

workflow for research and corrective action. If the requisition passes validation, a sales

document will be created.

(2) For materiel and/or quantities that cannot be sourced, DLA ICP will either

backorder or kill the unfilled quantity. DLA will send Supply Status (DLMS 870S/legacy

MILSTRIP DIC AE8) to Transaction Services for distribution to the IPV contractor indicating

action taken.

(3) For materiels/quantities that can be sourced, DLA ICP will provide both a

RDO (DLMS 940R/MILSTRIP legacy DIC A2A) to the DLA Distribution Center and a

Prepositioned Materiel Receipt (PMR) (DLMS 527D with Transaction Type Code DE and

LIN01 Code N or MILSTRAP legacy DIC DWK) to the IPV contractor.

(4) The DLA Distribution Center(s) will issue the materiel, send a Materiel

Release Confirmation (DLMS 945A/ MILSTRIP legacy DIC AR0) to the DLA ICP, and send

Shipment Status (DLMS 856S/MILSTRIP legacy DIC AS8) to Transaction Services for

distribution to the IPV contractor.

f. Alternatives: None identified.

5. REASON FOR CHANGE: This change is to enable optimal access to DLA-sourced

materiels by DLA IPV contractors in support of Military Service customer maintenance lines, by

facilitating the ability to obtain these materiels from multiple DLA Distribution Centers and to

backorder any partial unfilled quantities until materiel becomes available.

6. ADVANTAGES AND DISADVANTAGES:

a. Advantages: This change facilitates access to DLA-sourced materiels by IPV

contractors. This change may be adopted by other DLA programs.

b. Disadvantages: None.

7. ADDITIONAL FUNCTIONAL REQUIREMENTS: As IPV contracts are renewed, or to

the extent feasible as existing contracts are modified, applicable DLMS transactions used in the

IPV process will identify GFM contract data as required under ADCs 390/1014/1014A

(References 3.d., 3.e., and 3.f.). This includes the contractor’s requisition, the DLA
ADC 1152 Attachment

Page 6

redistribution order, the distribution center shipment status (to the contractor), the contractor

receipt, the contractor issue (to the Service customer), and the contractor shipment status (to the

customer).

8. ESTIMATED TIME LINE/IMPLEMENTATION TARGET: Implementation is

scheduled for First Quarter Calendar Year 2016.

9. ESTIMATED SAVINGS/COST AVOIDANCE ASSOCIATED WITH

IMPLEMENTATION OF THIS CHANGE: N/A

10. IMPACT:

a. New DLMS Data Elements: There are no new data elements.

b. Changes to DLMS Data Elements: There are no revised data elements.

c. Automated Information Systems (AIS):

(1) There is no impact on Service systems.

(2) DLA needs to determine impact of this change, if any, on the Distribution

Standard System (DSS) and EBS.

d. Transaction Services: Requires updates to the RDO format. This impacts Defense

Automatic Addressing System (DAAS) maps and may impact internal processing.

e. Non-DLM 4000.25 Series Publications: DLA should update internal procedures to

comply with the requirements outlined in this DLMS change.

11. PROPOSED DLMS CHANGE 1152 STAFFING RESPONSE/COMMENT

RESOLUTION:

Originator Response/Comment Disposition

1. Army Concur Noted.

2. Marine

Corps

No response

3. DLA Concur Noted.

4. Navy Concur Noted.

5. Defense

Security

Cooperation

Agency

I would think that FMS is an exception to this

process since we mainly deal with pull, funded

requisitions that have been vetted through FMS

edits WRT DLA.

The authorization for suffixing in the

RDO would only be applicable to

DLA in support of their IPV

program. This is a very limited
ADC 1152 Attachment

Page 7

Originator Response/Comment Disposition

I guess we would also need to know if this

suffixing of the RDO could impact downstream

transactions (AS_ shipping, Interfund).

In addition, the PDC states the following in red:

a. C3.23.3. For intra-DLA use, an RDO may be

used to redistribute DLA stock from a DLA

Distribution Center to the contractor location in

support of the DLA's Industrial Product-Support

Vendor (IPV) program (refer to DLM 4000.25,

Volume 2, Chapter 28)."

b. C4.7.22.2. For intra-Service use, an RDO may

be used to direct release and shipment of materiel

from a post, camp, station, or base to another

similar activity within the Service's distribution

system to satisfy a specific Service demand.

c. C4.7.22.3. For intra-DLA use, an RDO may be

used to redistribute DLA stock from a DLA

Distribution Center to the contractor location in

support of the DLA's Industrial Product-Support

Vendor (IPV) program (refer to Chapter 28)."

3. Does DLA Transaction Services History

showing these Intra-Service RDO scenarios

occurring in support of any FMS Case?

4. Is DAAS today routing a copy of any of the

RDO related transactions to the legacy FMS case

execution systems (MISIL, CISIL, and SAMIS)?

5. Please note that if the answer to 3 and/or 4 is

yes, there may be an impact on SCES.

6. My own impression is the PDC describes a

largely intra-service process which would not be

visible to the international customer.

scope and it will not impact FMS

support. The type of shipment

involved is between DLA

Distribution Centers and the vendor

under contract for this process. RDO

suffixing will not be used for

shipments to customers.
Page 1

Enclosure 1, DLMS Implementation Convention

Revise DLMS 940R as shown:

# Location 940R (4030) Warehouse Shipping Order Reason

1 DLMS

Introductory 

Notes

Add ADC 1152 to DLMS Introductory note 7:

- ADC 1152, Authorization to use a Suffix Code on a

Redistribution Order (RDO) in support of DLA Industrial

Product-Support Vendor (IPV)

Identifies DLMS

changes included

in the DLMS IC.

2 2/N907-01/0400 Revise DLMS note 1 associated with existing Qualifier W8:

W8 Suffix 

DLMS Note:

1. Use with N901 code TN for all transactions other than

redistribution orders, to identify the document number

suffix. Exceptions are authorized for use in intra-AF RDOs

and for intra-DLA RDOs in support of DLA Industrial

Product-Support Vendor (IPV) program. For AF RDO

use, refer to ADC 405. For DLA RDO use, refer to ADC

1152.

Supports DLA

requirement.

ADC 1152, Enclosure 1
ADC 1152, Enclosure 2

Page 1

Enclosure 2, MILSTRIP Redistribution Order (RDO)

Revise RDO legacy format as shown:

AP3.25. APPENDIX 3.25

REDISTRIBUTION ORDER

FIELD LEGEND

RECORD

POSITION(S) ENTRY AND INSTRUCTIONS

Document Identifier Code 1-3 Enter DIC A2_.

Routing Identifier Code To 4-6 Enter RIC of the source to which the document

is directed.

Media and Status 7 Enter the M&S code.

Stock or Part Number 8-22 Enter the NSN or part number.

Unit of Issue 23-24 Enter the U/I.

Quantity 25-29 a. Enter the quantity.

b. For ammunition and ammunition related

items only (items in Federal supply group

(FSG) 13 and for Federal supply classification

(FSC) 1410, 1420, 1427, 1440, 5330, 5865,

6810 or 8140), enter an M in rp 29 to express in

thousands any quantity exceeding 99,999.

Example: Express a quantity of 1,950,000 as

1950M (1950 in rp 25-28 and an M in rp 29).

Document Number 30-43 Enter document number assigned by the

preparing activity.

Demand/Suffix1 44 For intra-DLA, enter suffix code, if

appropriate; all others leave blank.

Supplementary Address 45-50 Enter the SUPADD of the consignee.

Signal 51 Enter the signal code, as appropriate.

Fund 52-53 Enter the fund code, if appropriate.

Distribution 54-56 This field will be blank unless entries are

prescribed by the preparing activity.

Distribution 54-56 This field will be blank unless entries are

prescribed by the preparing activity.

1 Suffix Code authorized for intra-DLA use in support of Industrial Product-Support Vendor (IPV)

program. Refer to ADC 1152.
ADC 1152, Enclosure 2

Page 2

Project 57-59 Enter the project code, when applicable.

Priority 60-61 Enter the priority designator.

Required Delivery

Date/Required Delivery

Period2

62-64 Normally left blank. Enter three-position

ordinal day when conditions meet prescribed

requirements.

Advice 65-66 Use an advice code to convey instructions to

the supply source. When code is not required

leave blank.

Date of Receipt of Order 67-69 Leave blank on submission. Processing points

will enter date of receipt.

Ownership 70 Enter ownership code, as appropriate.

Supply Condition 71 Enter supply condition code, as appropriate.

System Management 72-73 Enter system management codes applicable to

this transaction.

Routing Identifier Code From 74-76 Enter the RIC of initiating activity.

Inventory Control Data 77-80 Enter inventory control codes as prescribed.

2 Use of Required Delivery Period (RDP) for conventional ammunition last reported as not implemented by

USAF. Refer to AMCL 148.